The Sherman Antitrust Act was passed in 1890 and is now the backbone of current antitrust law in the United States. The Act was designed to regulate trade and commerce in order to promote competition and ensure that no one company was able to take over or harm any particular industry.
The core of the Sherman Antitrust Act prohibits “every contract, combination in the form of trust or otherwise, or conspiracy in restraint of trade or commerce among the several states.” Typically, these violations involve companies agreeing to fix prices or markets, preventing competitors from entering the market, using power to harm consumers, and making exclusive deals.
Modern Examples of Sherman Antitrust Violations
In recent years, companies violating the Sherman Antitrust Act have been forced to pay significant fines or reach settlements. Examples include Google and Apple, both of which were found to be engaging in anti-competitive business practices. Google was fined $2.7 billion by the European Union for unfairly prioritizing its own services and disadvantaging competitors in its search results. Apple was forced to pay $450 million to settle a class-action lawsuit alleging that it had colluded with five publishers to drive up prices for e-books.
Conclusion: Enforceable Legislation for Regulating Business Behavior
The Sherman Antitrust Act helps to keep our marketplace fair and competitive by prohibiting companies from colluding or forming monopolies and preventing them from abusing their power to harm consumers. Every business professional should be familiar with the principles of the Act and understand how it affects their operations. By adhering to the Sherman Antitrust Act, big companies can ensure they are operating legally and responsibly.